Your Teen Is Behind The Wheel, Will Adding Them Increase Your California Auto Insurance Policy?

California Auto Insurance isn't just for parents, but for their teens also. In some cases, parents will add their teen to their auto insurance policy, which can be expensive depending on the years the teen has been licensed and the type of vehicle they are driving. In this blog I want to explain to you why your auto insurance policy will increase when you add your teen and what you can do to try and lower it with discounts. 

Higher Risk Means Higher Rate

Insurance agencies look at teenagers as more liability with a higher risk of loss. Do you disagree with them? I didn't think so. Insurance is based on risk and the risk of accidents for young and inexperienced drivers is much more likely than an adult who has been driving for many years. The Center for Disease Control and Prevention state that teens are more likely than older drivers to underestimate dangerous situations or not be able to recognize hazardous situations. It is for this reason that insurance companies charge higher premiums in preparation for potential losses. 

Does My Teen Get Discounts?

Drivers between the ages of 16 and 25, who are attending school full time and have a good GPA of 3.0 or higher, are eligible for the good student discount. Your teen might also qualify for the Driver's education discount and down the road they can get discounts for maintain a good driving record. California auto insurance companies like to reward responsible people with discounts to lower their auto insurance. If you are adding a teen to your auto insurance policy make sure to ask one of the agents at John E. Peakes Insurance Agency about any discounts you or your teen might be eligible for.